Strategy 1

Money-market products

Bond opportunities and interest from loans to companies. We place funds in selected bonds and loans; the return comes from interest.

DRAFT copy — to be edited by the directors

How the strategy works · one cycle

Selection
We look for bonds and company loans with a reasonable interest rate and maturity.
Assessment
We assess the borrower, the maturity and the terms.
Placement
We place the funds on the agreed terms.
Monitoring
We follow repayments and the borrower's situation throughout.
Maturity
At maturity the borrower repays principal and interest; repaid funds go into the next selection.

A diagram of the process, not a record of trades.

Risk and who it suits

The return comes from interest, not from trading the market. The main risk is that borrowers do not repay.

Who it suits: Qualified investors looking for a part of their portfolio based on interest rather than trading.
Who it does not suit: Anyone who needs their funds available at any time or cannot accept the risk of non-repayment.
Horizon: It follows the maturity of the individual bonds and loans; we will go through it at the consultation.
Liquidity: We will go through the terms for depositing and withdrawing funds at the consultation.

Main risks: Credit risk: a borrower may repay a loan or bond late or not at all.
Liquidity risk: funds are tied up until maturity.
Interest-rate risk: a change in rates changes the value of bonds.
Concentration risk on a smaller number of borrowers.
The value of the investment can fall and investors may not get back the amount invested.

Director · indices and money-market products

Martin Jílek is responsible for this strategy. You can write to him directly with questions about it.

We will go through how the strategy works and whether it fits your portfolio.